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2026-11-07T18:47:10.000Z

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Germany’s Welfare Decline

Germany’s Welfare Decline

Around 120,000 young people demonstrated in more than 30 German cities on October 31, 2026, protesting the rising cost of living and declining job and housing opportunities. They called for better education and public services and opposed compulsory military service. Their concerns are compounded by strain on the pension system as the population ages: around 13.3 million workers are expected to reach retirement age by 2040, and, without reforms, social insurance contributions are projected to rise from 42.3% to 49.7% of wages. Meanwhile, entry-level job postings fell by more than two-thirds between 2022 and 2026. The burdens of defense spending and debt are adding pressure on future generations. Military spending rose from €86 billion in 2025 to more than €108 billion in 2026, with plans to reach around €140 billion in 2027. The report says the crisis raises questions about Germany’s ability to ensure a better life for every generation.

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